Amtrak described the fare increases as an important component of its fiscal 2006 budget to cover its increases in current and anticipated expenses, including the cost of fuel, which has risen 40 percent in the past year.

Starting Oct. 16, the approximately 18,000 Northeast Corridor commuters who have monthly passes will see a 10 percent increase. The monthly fares – which vary depending on destinations – are currently discounted at 70 percent. The discount will be adjusted to 60 percent, Amtrak said. In February 2006, that discount will be adjusted to 50 percent.

For the approximately 2,000 Smart Pass 10-trip ticket holders whose fares are discounted 50 to 60 percent, the discount will be dropped to 20 percent starting Oct. 16.

Starting Tuesday, Amtrak said, it will begin to "revenue manage" some Northeast Corridor trains to better match fares to demand periods to allow passengers traveling at off-peak times to take advantage of lower fares.

The fare increases come as President Bush has proposed eliminating the railroad's subsidies. Amtrak initially announced the fare increases Sept. 9 but postponed its plans a week later to gather more input from public officials and other groups. Amtrak backed off its initial plan to raise monthly pass fares for Northeast Corridor commuters by as much as 50 percent.

In July, a bipartisan group of senators introduced a bill that would cut Amtrak's operating subsidy by 40 percent, leaving the railroad with $3.3 billion in subsidies over six years. The cuts would be absorbed through cost cutting, restructuring and other changes.

Amtrak would receive $4.9 billion over six years for capital improvements, and the proposal would create a grant program giving states $1.4 billion for intercity passenger rail service.

Amtrak received a $1.2 billion subsidy for the current year. Another Senate measure would give Amtrak a $1.4 billion subsidy next year.